International Electronic Machines (IEM), a leader in the development of innovative sensor solutions for transportation systems, will develop the Adaptive Rotorcraft Condition and Usage Tracking System (ARCUTS), building upon and integrating wireless instrumentation systems developed for the U.S. Navy, CBM systems developed for the U.S. Army, and condition and diagnostic sensing systems developed for other Federal, state, and commercial purposes. ARCUTS will combine wireless technologies with specific sensing capabilities which may be targeted towards any aspect of the drive or engine systems.For Phase I, IEM will focus on a unique and innovative wireless torque monitoring approach for drive shafts which combines capabilities of two of IEM¿s patented and patent-pending inventions into a single powerful system for measuring and tracking torque at high sample rates (to detect even short transient strains) and high accuracy (to less than 1%) to permit accurate and reliable CBM of shafts and immediately dependent components. Torque measurement is proposed because accurate, high-speed torque measurement has strong implications not only for CBM applications but also for proper control and power usage applications on rotorcraft and in other settings as well. IEM will also show how ARCUTS provides its adaptability by demonstrating that the same core technology can be used to track the condition of other components of the drive train and engine. IEM will be supported in this work by the Boeing Corporation, premier designers and manufacturers of military and civilian rotorcraft as well as fixed-wing aircraft and one of NASA¿s partners in the development of the LCTR-2.